Wall Street suffers the worst single-day point decline in history

KFSN

Vanessa Vasconcelos

Tuesday, February 06, 2018 11:32PM

A tumultuous 48 hours on Wall Street after the Dow had its worst one-day point-drop, in history, plunging nearly 1,200 points.

FRESNO, Calif. - A tumultuous 48 hours on Wall Street after the Dow had its worst one-day point-drop, in history, plunging nearly 1,200 points. Stocks are bouncing back, closing at more than 560 points.

"You'll always have these small corrections that'll take place in the stock market. But you don't want to see them quite as dramatic as yesterday," said Economist Henry Nishimoto.

It is important to put events like this in perspective, referencing the stock market decline of 2008.

"Were in good shape we just have to be smarter in how we invest money in our economy," said Nishimoto.

He says poor economic expectations played a role in the last few days.

"When the feds start talking about raising interest rates like they have been doing for the past year it puts a damper on a lot of our expectations about how the economy is going to do I the next few years," said Nishimoto.

As interest rates go up, loans get more expensive and the fear is in response, people and businesses will spend less.

Though falling numbers could be a good opportunity, personal investors might want to consider moving their money into other areas.

"If they're experienced basically what they'll do is move their money from the stock to the bond market," said Nishimoto.

For those concerned about their 401k or retirement plans.

"I think we're going to have these corrections every now and then but I think for long-term investors. I think our outlook is very good," said Nishimoto.